Monument cash ISA replaceable allowance

esselle_aitch

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

singhini

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

esselle_aitch

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

eskbanker

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

esselle_aitch

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Thanks for the explanation, that makes sense 

jimjames

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Although if it was an official ISA transfer wouldn't that mean that the replaceable allowance was now in a different place?

eskbanker

jimjames said:

eskbanker said:

esselle_aitch said:

singhini said:

esselle_aitch said:

Hi. I opened a new cash ISA with Monument earlier in the year by transferring in from another cash ISA. I then subsequently transferred out £50k from this account into another new cash ISA. On the app it said that I had a replaceable allowance of £50k. Today I deposited £5k into this account thinking it would be counted as a new subscription for this tax year (I haven’t made any subscriptions for this tax year yet until today). Instead, the app still shows that I haven’t made any contributions for this year and have £20k allowance remaining, and the replaceable allowance amount has now decreased to £45k. There’s an explanation on the app that says if you take money out that you deposited in a previous tax year, you create a replaceable allowance. Any money deposited in the same tax year will replace the replaceable allowance first and anything above that will count towards the ISA allowance for the current tax year. But it also then also goes on to say that you must use your replaceable allowance in the same tax year it was created. This doesn’t make sense to me as now it looks like I can add £70k this year which is made up of the £50k replaceable allowance then followed by the £20k for this current tax year. Surely that can’t be right?! Have Monument made a mistake in the app and instead of having a replaceable allowance, it should just show that I’ve deposited £5k into this tax year and have £15k remaining?

That's correct, that's what you "could have" done with "them" 

You chose to "re-deposit" the £50k with "someone else" 
They have no way of knowing that, so they’re only displaying what they assume you’re permitted to do.

You have £15k left of this years allowance

Thanks for confirming. Just wondering if I need to contact Monument and get them to correct it in the app? I’m sure that a lot of people could get caught out by this and end up depositing more money than they’re allowed. 

It's not an error as such, so doesn't need to be 'corrected' - if you wanted, you could legitimately withdraw the £50K from wherever it now is and redeposit it with Monument, so the figures are technically correct.  As always, the onus is on the ISA holder to keep track of ISA money across multiple providers, as they can't work together to present an accurate summary for you.

Although if it was an official ISA transfer wouldn't that mean that the replaceable allowance was now in a different place?

My understanding is that no replaceable allowance transfers with the funds, so replenishment has to be to the ceding account rather than the receiving one.

1spiral

My partner and I both have monument isa's into which this years full 20K was deposited along with a transfer in from another provider.

Last year we each withdrew most of the funds and have subsequently redeposited all the withdrawn funds so the account is back to the state it was before the withdrawal.

This means we both should have 0 remaining current year allowance and no replaceable allowance however,

my account shows 19635 current allowance used and 365 remaining. My partners shows 20000 current years allowance remaining plus the remainder of the money withdrawn i.e. they haven't deducted any of the redeposited money.

Has anyone else withdrawn and redeposited only to see the app doesn't display the correct figures for what can be deposited.

eskbanker

1spiral said:

my account shows 19635 current allowance used and 365 remaining. My partners shows 20000 current years allowance remaining plus the remainder of the money withdrawn i.e. they haven't deducted any of the redeposited money.

I don't understand what you're saying there, but are there any known differences at all between the accounts and when each was funded, withdrawn, redeposited, etc?  Do you know of anything that correlates to the £365 figure, e.g. interest perhaps?

1spiral

eskbanker said:

1spiral said:

my account shows 19635 current allowance used and 365 remaining. My partners shows 20000 current years allowance remaining plus the remainder of the money withdrawn i.e. they haven't deducted any of the redeposited money.

I don't understand what you're saying there, but are there any known differences at all between the accounts and when each was funded, withdrawn, redeposited, etc?  Do you know of anything that correlates to the £365 figure, e.g. interest perhaps?

We withdrew 50K each, then subsequently repaid 50K into the account at a later date. When looking at the accounts yesterday I noticed that we both had allowances remaining (when there should be none).

In my partners case, the full 50K is remaining as being available to fund. In mine, only 365 is remaining available to fund.

That amount appears totally random and is not the amount of any interest deposit, nor as far as I can tell, the sum of any number of interest payments.

In that sense my partners is easier to explain because they just haven't subtracted any of the redeposited amount from the allowance. Mine is more difficult to understand.

eskbanker

1spiral said:

eskbanker said:

1spiral said:

my account shows 19635 current allowance used and 365 remaining. My partners shows 20000 current years allowance remaining plus the remainder of the money withdrawn i.e. they haven't deducted any of the redeposited money.

I don't understand what you're saying there, but are there any known differences at all between the accounts and when each was funded, withdrawn, redeposited, etc?  Do you know of anything that correlates to the £365 figure, e.g. interest perhaps?

We withdrew 50K each, then subsequently repaid 50K into the account at a later date. When looking at the accounts yesterday I noticed that we both had allowances remaining (when there should be none).

In my partners case, the full 50K is remaining as being available to fund. In mine, only 365 is remaining available to fund.

That amount appears totally random and is not the amount of any interest deposit, nor as far as I can tell, the sum of any number of interest payments.

In that sense my partners is easier to explain because they just haven't subtracted any of the redeposited amount from the allowance. Mine is more difficult to understand.

If you're saying that the two ISAs show as £365 and £50K remaining, when you expect them both to be the same at zero, then I imagine that the only way of progressing the matter is to contact Monument.